Turkey’s deep sea scrap prices have hit $420-422/mt CFR in ex-North America and ex-Baltic HMS I/II 80:20 scrap in new deals disclosed to the market today, January 31. Another ex-EU deal was shared from last week, though only the average price was voiced for this cargo.
A Marmara-based mill Turkish concluded an ex-US deal yesterday, January 30, for HMS I/II 80:20 scrap at $422/mt CFR, and shredded and bonus grade scrap at $442/mt CFR, for March shipment. This deal indicates a slight $2/mt increase for ex-US scrap prices.
One cargo was bought from Canada, with HMS I/II 95:5 scrap at $431/mt CFR and shredded scrap at $443/mt CFR. The total tonnage is believed to be 40,000 mt. The prices signal $420/mt CFR for ex-US HMS I/II 80:20 scrap which is in line with SteelOrbis’ current reference quotations. It should be noted that some market players think that the HMS I/II 95:5 scrap price is at $433/mt CFR.
Another deal from Finland was done by an Iskenderun-based steel mill with the HMS I/II 80:20 scrap prices standing at $420/mt CFR. As a result, Baltic HMS I/II 80:20 scrap prices have increased to a level similar to US origin scrap for the first time in a long time, with a $6/mt increase recorded on the lower end.
An ex-UK deal is rumored to have been closed by an Iskenderun-based producer, with HMS I/II 80:20 scrap standing at $413/mt CFR, pushing the ex-EU scrap price average up by $1/mt from SteelOrbis’ ex-EU HMS I/II 80:20 scrap reference prices previously stood at $410-414/mt CFR, as fixed in deals. The cargo is to be shipped in March.
An ex-German cargo was also sold to Iskenderun with the average level of $412/mt CFR Turkey, but the breakdown of the cargo is not known. Since the deal was done last week, it has no impact on prices now.
Late last week, ex-Israeli HMS I/II 75:25 scrap was sold to Turkey at $385/mt CIF Iskenderun. However, the bids today are at $390/mt CIF, but are not accepted by sellers who are now aiming for $400s/mt CIF due to the uptrend in the deep sea segment. Meanwhile, the workable level for HMS I/II 80:20 scrap from Bulgaria and Romania is in the range of $400-405/mt CFR. Offers in the short sea segment disappeared for some time as sellers sought to monitor the upward push in the deep sea segment.
Optimism continues to be observed in Turkey’s import scrap market. While the dock prices on the US East Coast have stabilized this week, the collection prices of European scrap exporters are still at €350-355/mt DAP, while even higher levels have been heard from time to time. As of today, it is observed that Turkish mills are increasing their domestic scrap procurement prices too, which gives the impression that they are trying to secure scrap flow for their yards. Ship scrap prices have increased to $410/mt delivered by truck in Izmir, while the benchmark DKP grade scrap price of Çolakoğlu is now at $422/mt delivered to customer. Meanwhile, rebar spot prices in Turkey have also increased, to $705-710/mt ex-warehouse, while most Marmara and Izmir-based mills are offering their official rebar prices at $715-730/mt ex-works. Russian billet offers are expected to be at $600/mt CFR and above this week. In the import segment, available allocation volumes have remained low, mainly due to the absence of Asian suppliers and the rather high indicative prices from both the GCC region and Asia. It is also known that Turkey still has a significant need for deep sea scrap for shipment in March. The lively scrap demand received from EU-based producers and from Turkey’s traditional competitors will provide support for suppliers.